First National Corporation Reports First Quarter 2025 Financial Results
First National Corporation reported first quarter 2025 earnings of $1.52 million with earnings per share of $0.18. Adjusted earnings excluding acquisition items were $3.1 million ($0.35 per share).
Key highlights include:
- Total assets reached $2.033 billion, up 40.5% year-over-year
- Net loans grew to $1.436 billion, increasing 49.5%
- Total deposits rose to $1.825 billion, up 44.9%
- Net interest margin improved to 3.77% from 3.24% last year
The company completed its Touchstone operational merger in Q1 2025, incurring $1.9 million in merger costs. Asset quality improved with nonperforming assets decreasing to 0.24% of total assets. The bank maintained strong liquidity with available sources totaling $800.2 million and declared a quarterly cash dividend of $0.155 per share.
First National Corporation ha riportato utili per il primo trimestre 2025 pari a 1,52 milioni di dollari con un utile per azione di 0,18 dollari. Gli utili rettificati, escludendo gli elementi di acquisizione, sono stati di 3,1 milioni di dollari (0,35 dollari per azione).
I punti salienti includono:
- Totale attivi raggiunti 2,033 miliardi di dollari, in aumento del 40,5% su base annua
- Prestiti netti cresciuti a 1,436 miliardi di dollari, con un incremento del 49,5%
- Depositi totali saliti a 1,825 miliardi di dollari, in crescita del 44,9%
- Margine di interesse netto migliorato al 3,77% rispetto al 3,24% dell’anno precedente
L’azienda ha completato la sua fusione operativa con Touchstone nel primo trimestre 2025, sostenendo costi di fusione per 1,9 milioni di dollari. La qualità degli attivi è migliorata con gli attivi non performanti scesi allo 0,24% del totale attivi. La banca ha mantenuto una forte liquidità con fonti disponibili per un totale di 800,2 milioni di dollari e ha dichiarato un dividendo trimestrale in contanti di 0,155 dollari per azione.
First National Corporation reportó ganancias del primer trimestre de 2025 por 1.52 millones de dólares con ganancias por acción de 0.18 dólares. Las ganancias ajustadas, excluyendo elementos de adquisición, fueron de 3.1 millones de dólares (0.35 dólares por acción).
Los aspectos más destacados incluyen:
- Los activos totales alcanzaron 2,033 millones de dólares, un aumento del 40.5% interanual
- Los préstamos netos crecieron a 1,436 millones de dólares, aumentando un 49.5%
- Los depósitos totales aumentaron a 1,825 millones de dólares, un alza del 44.9%
- El margen neto de interés mejoró al 3.77% desde el 3.24% del año pasado
La compañía completó su fusión operativa con Touchstone en el primer trimestre de 2025, incurriendo en costos de fusión por 1.9 millones de dólares. La calidad de los activos mejoró con activos improductivos disminuyendo al 0.24% del total de activos. El banco mantuvo una sólida liquidez con fuentes disponibles por un total de 800.2 millones de dólares y declaró un dividendo trimestral en efectivo de 0.155 dólares por acción.
퍼스트 내셔널 코퍼레이션은 2025년 1분기 순이익 152만 달러, 주당순이익 0.18달러를 보고했습니다. 인수 관련 항목을 제외한 조정 순이익은 310만 달러(주당 0.35달러)였습니다.
주요 내용은 다음과 같습니다:
- 총 자산이 20억 3,300만 달러로 전년 대비 40.5% 증가
- 순대출금이 14억 3,600만 달러로 49.5% 증가
- 총 예금이 18억 2,500만 달러로 44.9% 증가
- 순이자마진이 작년 3.24%에서 3.77%로 개선
회사는 2025년 1분기에 터치스톤 운영 합병을 완료했으며, 합병 비용으로 190만 달러를 지출했습니다. 자산 품질은 총 자산 대비 부실 자산 비율이 0.24%로 감소하며 개선되었습니다. 은행은 8억 200만 달러의 가용 유동성을 유지했으며, 주당 0.155달러의 분기 현금 배당금을 선언했습니다.
First National Corporation a annoncé un bénéfice de 1,52 million de dollars pour le premier trimestre 2025, avec un bénéfice par action de 0,18 dollar. Le bénéfice ajusté, hors éléments liés aux acquisitions, s'élève à 3,1 millions de dollars (0,35 dollar par action).
Les points clés incluent :
- Les actifs totaux ont atteint 2,033 milliards de dollars, en hausse de 40,5 % par rapport à l'année précédente
- Les prêts nets ont augmenté pour atteindre 1,436 milliard de dollars, soit une hausse de 49,5 %
- Les dépôts totaux ont progressé à 1,825 milliard de dollars, en hausse de 44,9 %
- La marge nette d'intérêt s'est améliorée à 3,77 % contre 3,24 % l'année dernière
L'entreprise a finalisé sa fusion opérationnelle avec Touchstone au premier trimestre 2025, engendrant des coûts de fusion de 1,9 million de dollars. La qualité des actifs s'est améliorée avec une diminution des actifs non performants à 0,24 % du total des actifs. La banque a maintenu une forte liquidité avec des sources disponibles totalisant 800,2 millions de dollars et a déclaré un dividende trimestriel en espèces de 0,155 dollar par action.
First National Corporation meldete für das erste Quartal 2025 einen Gewinn von 1,52 Millionen US-Dollar bei einem Gewinn je Aktie von 0,18 US-Dollar. Bereinigte Gewinne ohne Akquisitionskosten lagen bei 3,1 Millionen US-Dollar (0,35 US-Dollar je Aktie).
Wichtige Highlights sind:
- Die Gesamtaktiva erreichten 2,033 Milliarden US-Dollar, ein Anstieg von 40,5 % im Jahresvergleich
- Netto-Darlehen stiegen auf 1,436 Milliarden US-Dollar, ein Plus von 49,5 %
- Gesamteinlagen erhöhten sich auf 1,825 Milliarden US-Dollar, ein Anstieg von 44,9 %
- Die Nettozinsmarge verbesserte sich von 3,24 % im Vorjahr auf 3,77 %
Das Unternehmen schloss im ersten Quartal 2025 seine Touchstone-Operationfusion ab und trug dabei Fusionskosten von 1,9 Millionen US-Dollar. Die Vermögensqualität verbesserte sich, da notleidende Vermögenswerte auf 0,24 % der Gesamtaktiva sanken. Die Bank hielt eine starke Liquidität mit verfügbaren Mitteln von insgesamt 800,2 Millionen US-Dollar aufrecht und erklärte eine vierteljährliche Bardividende von 0,155 US-Dollar je Aktie.
- Total assets increased 40.5% YoY to $2.033 billion
- Net loans grew 49.5% YoY to $1.436 billion
- Total deposits up 44.9% YoY to $1.825 billion
- Net interest margin improved to 3.77% from 3.24% YoY
- Noninterest bearing deposits increased 40.7% YoY
- Strong liquidity position with $800.2 million in available sources
- Asset quality improved with NPAs decreasing to 0.24% of total assets
- Allowance for credit losses to NPAs strengthened to 302.94%
- Q1 2025 earnings impacted by $1.9M in merger-related expenses
- Net interest margin declined to 3.77% from 3.83% QoQ
- Net charge-offs increased to $2.4M in Q1 2025 vs $362K in Q1 2024
- Noninterest income decreased $2.8M QoQ to $3.6M
- Fraud losses of $294K reported in Q1 2025
- FDIC insurance assessment costs increased
- Uninsured deposits increased to $549.3M
STRASBURG, Va., April 30, 2025 (GLOBE NEWSWIRE) -- First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), the bank holding company of First Bank (the “Bank”), reported earnings for the quarter ending March 31, 2025 of
“We completed the Touchstone system conversion during the first quarter of 2025 and are looking forward to building upon this transformational acquisition. Earnings were impacted short-term in the first quarter from merger related expenses as well as operating on two different systems until late February. Going forward we expect to return to our efficient model of banking and enjoy scale and growth from these new markets,” said Scott Harvard, President and Chief Executive Officer of First National.
FIRST QUARTER 2025 HIGHLIGHTS
- Completed operational merger with Touchstone Bankshares, Inc.
- Total assets at
$2.03 3 billion, up40.5% from one year prior - Net loans held for investment of
$1.43 6 billion, up49.5% from one year prior - Allowance for credit losses to non-performing assets improved
92.6% to302.88% from one year prior - Total deposits of
$1.82 5 billion, up44.9% from one year prior - Noninterest bearing deposits of
$540.4 million , up40.7% from one year prior - Noninterest bearing deposits comprised
30% of total deposits at March 31, 2025 - Net interest margin(1) of
3.77% , up16.4% from3.24% one year prior
MERGER WITH TOUCHSTONE BANKSHARES, INC. (“TOUCHSTONE”)
On October 1, 2024, the Company completed its acquisition of Touchstone. Touchstone’s results of operations are included in the Company’s consolidated results since the date of acquisition, and, therefore, the Company’s first quarter 2025 and fourth quarter 2024 results reflect significantly increased levels of average balances, net interest income, direct merger expenses and operational expenses compared to the first quarter 2024. The Company incurred pre-tax merger costs of approximately
NET INTEREST INCOME
For the first quarter of 2025, the Company’s net interest margin fully taxable equivalent ("FTE")(1) was
| Loan Accretion (Amortization) | Deposit Accretion | Borrowings Amortization | Total | ||||||||||||
| For the quarter ended December 31, 2024 | $ | 492 | 565 | — | $ | 1,057 | |||||||||
| For the quarter ended March 31, 2025 | (194 | ) | 443 | (285 | ) | (36 | ) | ||||||||
Earning asset yields for the first quarter of 2025 decreased 12 basis points to
NONINTEREST INCOME
Non-interest income decreased
NONINTEREST EXPENSE
Noninterest expense decreased
Adjusted operating noninterest expense(1), which excludes merger-related costs (
BALANCE SHEET
At March 31, 2025, total assets were
At March 31, 2025, LHFI net of allowance totaled
At March 31, 2025, total investments were
At March 31, 2025, total deposits were
There were no other borrowings on March 31, 2025, or December 31, 2024. Other borrowings totaled
LIQUIDITY
Liquidity sources available to the Bank, including interest-bearing deposits in banks, unpledged securities available for sale, at fair value, unpledged securities held-to-maturity, at par, eligible to be pledged, and available lines of credit totaled
The Bank maintains liquidity to fund loan growth and to meet potential demand from deposit customers, including potential volatile deposits. The estimated amount of uninsured customer deposits totaled
ASSET QUALITY
Nonperforming Assets
Management classifies non-performing assets ("NPAs") as non-accrual loans and other real estate owned (OREO). NPAs as a percentage of total assets decreased to
NPAs decreased by
Past Due Loans
There were no loans past due over 90 days or more and still accruing interest on March 31, 2025, compared to
Net Charge-offs
For the first quarter of 2025 net charge-offs included
Allowance for Credit Losses
The allowance for credit losses on loans totaled
The calculated specific reserve decreased after previously identified individually evaluated loans were charged off during the quarter. The provision for credit losses for the fourth quarter of 2024 included a
CAPITAL
During the first quarter of 2025, the Company declared and paid cash dividends of
The following table provides capital ratios and values for the periods ended:
| Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | |||||||||
| Total capital ratio (2) | 12.44 | % | 12.35 | % | 14.45 | % | |||||
| Tier 1 capital ratio (2) | 11.39 | % | 11.19 | % | 13.20 | % | |||||
| Common equity Tier 1 capital ratio (2) | 11.39 | % | 11.19 | % | 13.20 | % | |||||
| Leverage ratio (2) | 8.28 | % | 7.95 | % | 9.19 | % | |||||
| Common equity to total assets (3) | 8.30 | % | 8.29 | % | 8.14 | % | |||||
| Tangible common equity to tangible assets (1) (3) | 7.50 | % | 7.46 | % | 7.94 | % | |||||
| Tangible book value per share | $ | 16.81 | $ | 16.55 | $ | 18.27 | |||||
ABOUT FIRST NATIONAL CORPORATION
First National Corporation (NASDAQ: FXNC) is the parent company and bank holding company of First Bank, a community bank that first opened for business in 1907 in Strasburg, Virginia. The Bank offers loan and deposit products and services through its website, www.fbvirginia.com, its mobile banking platform, a network of ATMs located throughout its market area, three loan production offices, a customer service center in a retirement community, and thirty-three bank branch office locations located throughout the Shenandoah Valley, the south-central regions of Virginia, the Roanoke Valley, the Richmond MSA, and in northern North Carolina. In addition to providing traditional banking services, the Bank operates a wealth management division under the name First Bank Wealth Management. First Bank also owns First Bank Financial Services, Inc., which owns an interest in an entity that provides title insurance services.
NON-GAAP FINANCIAL MEASURES
In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include adjusted operating net income, adjusted operating non-interest expense, adjusted basic and diluted earnings (loss) per share, adjusted return on average assets, adjusted return on average equity, pre-provision pre-tax earnings, adjusted pre-provision pre-tax earnings, fully taxable equivalent interest income, the net interest margin, the efficiency ratio, tangible book value per share, and tangible common equity to tangible assets.
The Company believes certain non-GAAP financial measures enhance the understanding of its business and performance. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is included at the end of this release.
FORWARD-LOOKING STATEMENTS
Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts, and other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” and “projects,” as well as similar expression. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties. For details on factors that could affect expectations, future events, or results, see the risk factors and other cautionary language included in First National’s Annual Report on Form 10-K for the year ended December 31, 2024, and most recent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (the “SEC”).
CONTACTS
| Scott C. Harvard | Brad E. Schwartz | |
| President and CEO | Executive Vice President and CFO | |
| (540) 465-9121 | (540) 465-9121 | |
| sharvard@fbvirginia.com | bschwartz@fbvirginia.com |
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)
| (unaudited) | ||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||
| Income Statement | ||||||||||||||||||
| Interest and dividend income | ||||||||||||||||||
| Interest and fees on loans | $ | 20,637 | $ | 21,516 | $ | 14,479 | $ | 14,004 | $ | 13,484 | ||||||||
| Interest on deposits in banks | 1,671 | 2,085 | 1,538 | 1,579 | 1,288 | |||||||||||||
| Interest on federal funds sold | 40 | 189 | — | — | — | |||||||||||||
| Taxable interest on securities | 1,314 | 1,284 | 1,091 | 1,134 | 1,224 | |||||||||||||
| Tax-exempt interest on securities | 300 | 308 | 303 | 306 | 305 | |||||||||||||
| Dividends | 60 | 104 | 33 | 32 | 33 | |||||||||||||
| Total interest and dividend income | $ | 24,022 | $ | 25,486 | $ | 17,444 | $ | 17,055 | $ | 16,334 | ||||||||
| Interest expense | ||||||||||||||||||
| Interest on deposits | $ | 6,038 | $ | 6,415 | $ | 4,958 | $ | 4,820 | $ | 4,771 | ||||||||
| Interest on federal funds purchased | — | 1 | — | — | — | |||||||||||||
| Interest on subordinated debt | 467 | 396 | 69 | 69 | 69 | |||||||||||||
| Interest on junior subordinated debt | 66 | 68 | 68 | 66 | 68 | |||||||||||||
| Interest on other borrowings | — | 247 | 600 | 606 | 576 | |||||||||||||
| Total interest expense | $ | 6,571 | $ | 7,127 | $ | 5,695 | $ | 5,561 | $ | 5,484 | ||||||||
| Net interest income | $ | 17,451 | $ | 18,359 | $ | 11,749 | $ | 11,494 | $ | 10,850 | ||||||||
| Provision for credit losses | 832 | 4,750 | 1,700 | 400 | 1,000 | |||||||||||||
| Net interest income after provision for credit losses | $ | 16,619 | $ | 13,609 | $ | 10,049 | $ | 11,094 | $ | 9,850 | ||||||||
| Noninterest income | ||||||||||||||||||
| Service charges on deposit accounts | $ | 1,013 | $ | 1,181 | $ | 675 | $ | 612 | $ | 654 | ||||||||
| ATM and check card fees | 996 | 792 | 934 | 809 | 770 | |||||||||||||
| Wealth management fees | 898 | 903 | 952 | 879 | 883 | |||||||||||||
| Fees for other customer services | 258 | 317 | 276 | 178 | 195 | |||||||||||||
| Brokered mortgage fees | 110 | 90 | 92 | 32 | 38 | |||||||||||||
| Income from bank owned life insurance | 246 | 264 | 191 | 149 | 151 | |||||||||||||
| Net gains (losses) on securities available for sale | — | (154 | ) | 39 | — | — | ||||||||||||
| Bargain purchase gain | — | 2,920 | — | — | — | |||||||||||||
| Other operating income | 90 | 131 | 44 | 27 | 1,356 | |||||||||||||
| Total noninterest income | $ | 3,611 | $ | 6,444 | $ | 3,203 | $ | 2,686 | $ | 4,047 | ||||||||
| Noninterest expense | ||||||||||||||||||
| Salaries and employee benefits | $ | 8,689 | $ | 7,503 | $ | 5,927 | $ | 5,839 | $ | 5,871 | ||||||||
| Occupancy | 1,069 | 913 | 577 | 548 | 535 | |||||||||||||
| Equipment | 1,025 | 1,123 | 726 | 691 | 591 | |||||||||||||
| Marketing | 220 | 331 | 260 | 270 | 195 | |||||||||||||
| Supplies | 217 | 186 | 110 | 115 | 116 | |||||||||||||
| Legal and professional fees | 522 | 520 | 498 | 486 | 452 | |||||||||||||
| ATM and check card expense | 439 | 385 | 394 | 368 | 361 | |||||||||||||
| FDIC assessment | 414 | 285 | 195 | 203 | 177 | |||||||||||||
| Bank franchise tax | 317 | 262 | 262 | 261 | 262 | |||||||||||||
| Data processing expense | 762 | 684 | 289 | 160 | 246 | |||||||||||||
| Amortization expense | 442 | 448 | 4 | 5 | 4 | |||||||||||||
| Other real estate owned expense (income), net | (8 | ) | 5 | 10 | — | — | ||||||||||||
| Merger expense | 1,940 | 7,316 | 219 | 571 | — | |||||||||||||
| Other operating expense | 2,287 | 1,968 | 988 | 1,142 | 1,077 | |||||||||||||
| Total noninterest expense | $ | 18,335 | $ | 21,929 | $ | 10,459 | $ | 10,659 | $ | 9,887 | ||||||||
| Income (loss) before income taxes | $ | 1,895 | $ | (1,876 | ) | $ | 2,793 | $ | 3,121 | $ | 4,010 | |||||||
| Income tax expense (benefit) | 297 | (943 | ) | 545 | 679 | 801 | ||||||||||||
| Net income (loss) | $ | 1,598 | $ | (933 | ) | $ | 2,248 | $ | 2,442 | $ | 3,209 | |||||||
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)
| (unaudited) | |||||||||||||||||||
| As of or For the Three Months Ended | |||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||||||
| Common Share and Per Common Share Data | |||||||||||||||||||
| Earnings (loss) per common share, basic | $ | 0.18 | $ | (0.10 | ) | $ | 0.36 | $ | 0.39 | $ | 0.51 | ||||||||
| Adjusted earnings (loss) per common share, basic (1) | $ | 0.35 | $ | 0.66 | $ | 0.39 | $ | 0.48 | $ | 0.51 | |||||||||
| Weighted average shares, basic | 8,979,527 | 8,971,649 | 6,287,997 | 6,278,113 | 6,269,790 | ||||||||||||||
| Earnings (loss) per common share, diluted | $ | 0.18 | $ | (0.10 | ) | $ | 0.36 | $ | 0.39 | $ | 0.51 | ||||||||
| Adjusted earnings (loss) per common share, diluted (1) | $ | 0.35 | $ | 0.66 | $ | 0.39 | $ | 0.48 | $ | 0.51 | |||||||||
| Weighted average shares, diluted | 9,005,923 | 8,994,315 | 6,303,282 | 6,289,405 | 6,282,534 | ||||||||||||||
| Shares outstanding at period end | 8,986,696 | 8,974,102 | 6,296,705 | 6,280,406 | 6,277,373 | ||||||||||||||
| Tangible book value per share at period end (1) | $ | 16.81 | $ | 16.55 | $ | 19.37 | $ | 18.59 | $ | 18.27 | |||||||||
| Cash dividends declared | $ | 0.155 | $ | 0.155 | $ | 0.150 | $ | 0.150 | $ | 0.150 | |||||||||
| Key Performance Ratios | |||||||||||||||||||
| Return on average assets | 0.32 | % | (0.18 | %) | 0.62 | % | 0.68 | % | 0.90 | % | |||||||||
| Adjusted return on average assets (1) | 0.63 | % | 1.15 | % | 0.67 | % | 0.84 | % | 0.90 | % | |||||||||
| Return on average equity | 3.85 | % | (2.35 | %) | 7.28 | % | 8.31 | % | 11.07 | % | |||||||||
| Adjusted return on average equity (1) | 7.61 | % | 15.01 | % | 7.93 | % | 10.23 | % | 11.07 | % | |||||||||
| Net interest margin | 3.75 | % | 3.80 | % | 3.40 | % | 3.37 | % | 3.21 | % | |||||||||
| Net interest margin fully tax-equivalent (1) | 3.77 | % | 3.83 | % | 3.43 | % | 3.40 | % | 3.24 | % | |||||||||
| Efficiency ratio (1) | 75.44 | % | 63.97 | % | 68.13 | % | 70.65 | % | 65.65 | % | |||||||||
| Average Balances | |||||||||||||||||||
| Average assets | $ | 2,016,958 | $ | 2,051,578 | $ | 1,449,185 | $ | 1,448,478 | $ | 1,431,612 | |||||||||
| Average earning assets | 1,888,427 | 1,919,864 | 1,374,566 | 1,370,187 | 1,361,172 | ||||||||||||||
| Average noninterest deposits to total average deposits | 29.01 | % | 29.20 | % | 31.08 | % | 31.44 | % | 30.15 | % | |||||||||
| Average shareholders’ equity | $ | 168,245 | $ | 157,844 | $ | 122,802 | $ | 118,255 | $ | 116,628 | |||||||||
| Asset Quality | |||||||||||||||||||
| Allowance for credit losses on loans to nonperforming assets | 302.94 | % | 233.49 | % | 212.26 | % | 146.84 | % | 157.24 | % | |||||||||
| Allowance for credit losses on loans to period end loans | 1.02 | % | 1.12 | % | 1.28 | % | 1.27 | % | 1.30 | % | |||||||||
| Nonperforming assets to period end loans | 0.34 | % | 0.48 | % | 0.60 | % | 0.86 | % | 0.82 | % | |||||||||
| Loan charge-offs | $ | 2,490 | $ | 1,432 | $ | 1,667 | $ | 521 | $ | 413 | |||||||||
| Loan recoveries | 89 | 98 | 95 | 39 | 51 | ||||||||||||||
| Net charge-offs | 2,401 | 1,334 | 1,572 | 482 | 362 | ||||||||||||||
| Non-accrual loans | 4,864 | 6,971 | 5,929 | 8,549 | 8,015 | ||||||||||||||
| Other real estate owned, net | — | 53 | 56 | — | — | ||||||||||||||
| Nonperforming assets | 4,864 | 7,024 | 5,985 | 8,549 | 8,015 | ||||||||||||||
| Loans 30 to 89 days past due, accruing | 5,021 | 3,085 | 2,358 | 2,399 | 2,279 | ||||||||||||||
| Loans over 90 days past due, accruing | — | 365 | — | — | 175 | ||||||||||||||
| Capital Ratios (4) | |||||||||||||||||||
| Total capital | $ | 182,563 | $ | 181,449 | $ | 148,477 | $ | 147,500 | $ | 145,977 | |||||||||
| Tier 1 capital | 167,150 | 164,454 | 135,490 | 134,451 | 133,341 | ||||||||||||||
| Common equity Tier 1 capital | 167,150 | 164,454 | 135,490 | 134,451 | 133,341 | ||||||||||||||
| Total capital to risk-weighted assets | 12.44 | % | 12.35 | % | 14.29 | % | 14.13 | % | 14.45 | % | |||||||||
| Tier 1 capital to risk-weighted assets | 11.39 | % | 11.19 | % | 13.04 | % | 12.88 | % | 13.20 | % | |||||||||
| Common equity Tier 1 capital to risk-weighted assets | 11.39 | % | 11.19 | % | 13.04 | % | 12.88 | % | 13.20 | % | |||||||||
| Leverage ratio | 8.28 | % | 7.95 | % | 9.23 | % | 9.17 | % | 9.19 | % | |||||||||
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)
| (unaudited) | |||||||||||||||||||
| For the Period Ended | |||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||||||
| Balance Sheet | |||||||||||||||||||
| Cash and due from banks | $ | 27,432 | $ | 24,916 | $ | 18,197 | $ | 16,729 | $ | 14,476 | |||||||||
| Interest-bearing deposits in banks | 178,600 | 137,958 | 108,319 | 118,906 | 124,232 | ||||||||||||||
| Cash and cash equivalents | $ | 206,032 | $ | 162,874 | $ | 126,516 | $ | 135,635 | $ | 138,708 | |||||||||
| Securities available for sale, at fair value | 160,976 | 163,847 | 146,013 | 144,816 | 147,675 | ||||||||||||||
| Securities held to maturity, at amortized cost (net of allowance for credit losses) | 108,292 | 109,741 | 121,425 | 123,497 | 125,825 | ||||||||||||||
| Restricted securities, at cost | 4,436 | 3,741 | 2,112 | 2,112 | 2,112 | ||||||||||||||
| Loans, net of allowance for credit losses | 1,435,895 | 1,450,604 | 982,016 | 977,423 | 960,371 | ||||||||||||||
| Other real estate owned, net | — | 53 | 56 | — | — | ||||||||||||||
| Premises and equipment, net | 34,609 | 34,824 | 22,960 | 22,205 | 21,993 | ||||||||||||||
| Accrued interest receivable | 6,126 | 6,020 | 4,794 | 4,916 | 4,978 | ||||||||||||||
| Bank owned life insurance | 38,136 | 37,873 | 24,992 | 24,802 | 24,652 | ||||||||||||||
| Goodwill | 3,030 | 3,030 | 3,030 | 3,030 | 3,030 | ||||||||||||||
| Core deposit intangibles, net | 14,544 | 14,986 | 104 | 108 | 113 | ||||||||||||||
| Other assets | 21,270 | 22,688 | 16,698 | 18,984 | 17,738 | ||||||||||||||
| Total assets | $ | 2,033,346 | $ | 2,010,281 | $ | 1,450,716 | $ | 1,457,528 | $ | 1,447,195 | |||||||||
| Noninterest-bearing demand deposits | $ | 540,387 | $ | 520,153 | $ | 383,400 | $ | 397,770 | $ | 384,092 | |||||||||
| Savings and interest-bearing demand deposits | 922,197 | 924,880 | 663,925 | 665,208 | 677,458 | ||||||||||||||
| Time deposits | 362,392 | 358,745 | 205,930 | 202,818 | 197,587 | ||||||||||||||
| Total deposits | $ | 1,824,976 | $ | 1,803,778 | $ | 1,253,255 | $ | 1,265,796 | $ | 1,259,137 | |||||||||
| Other borrowings | — | — | 50,000 | 50,000 | 50,000 | ||||||||||||||
| Subordinated debt, net | 21,461 | 21,176 | 4,999 | 4,998 | 4,998 | ||||||||||||||
| Junior subordinated debt | 9,279 | 9,279 | 9,279 | 9,279 | 9,279 | ||||||||||||||
| Accrued interest payable and other liabilities | 8,955 | 9,517 | 8,068 | 7,564 | 5,965 | ||||||||||||||
| Total liabilities | $ | 1,864,671 | $ | 1,843,750 | $ | 1,325,601 | $ | 1,337,637 | $ | 1,329,379 | |||||||||
| Common stock | 11,233 | 11,218 | 7,871 | 7,851 | 7,847 | ||||||||||||||
| Surplus | 77,354 | 77,058 | 33,409 | 33,116 | 33,021 | ||||||||||||||
| Retained earnings | 97,152 | 96,947 | 99,270 | 97,966 | 96,465 | ||||||||||||||
| Accumulated other comprehensive (loss), net | (17,064 | ) | (18,692 | ) | (15,435 | ) | (19,042 | ) | (19,517 | ) | |||||||||
| Total shareholders’ equity | $ | 168,675 | $ | 166,531 | $ | 125,115 | $ | 119,891 | $ | 117,816 | |||||||||
| Total liabilities and shareholders’ equity | $ | 2,033,346 | $ | 2,010,281 | $ | 1,450,716 | $ | 1,457,528 | $ | 1,447,195 | |||||||||
| Loan Data | |||||||||||||||||||
| Real estate loans: | |||||||||||||||||||
| Construction and land development | $ | 81,596 | $ | 84,480 | $ | 61,446 | $ | 60,919 | $ | 53,364 | |||||||||
| Secured by farmland | 12,314 | 14,133 | 9,099 | 8,911 | 9,079 | ||||||||||||||
| Secured by 1-4 family residential | 550,183 | 547,576 | 351,004 | 346,976 | 347,014 | ||||||||||||||
| Other real estate loans | 653,367 | 658,029 | 440,648 | 440,857 | 436,006 | ||||||||||||||
| Loans to farmers (except those secured by real estate) | 858 | 940 | 633 | 349 | 332 | ||||||||||||||
| Commercial and industrial loans (except those secured by real estate) | 131,539 | 140,393 | 114,190 | 115,951 | 113,230 | ||||||||||||||
| Consumer installment loans | 8,034 | 7,582 | 5,396 | 5,068 | 4,808 | ||||||||||||||
| Deposit overdrafts | 486 | 450 | 253 | 365 | 251 | ||||||||||||||
| All other loans | 12,253 | 13,421 | 12,051 | 10,580 | 8,890 | ||||||||||||||
| Total loans | $ | 1,450,630 | $ | 1,467,004 | $ | 994,720 | $ | 989,976 | $ | 972,974 | |||||||||
| Allowance for credit losses | (14,735 | ) | (16,400 | ) | (12,704 | ) | (12,553 | ) | (12,603 | ) | |||||||||
| Loans, net | $ | 1,435,895 | $ | 1,450,604 | $ | 982,016 | $ | 977,423 | $ | 960,371 | |||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands, except share and per share data)
| (unaudited) | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||||||
| Operating Net Income | |||||||||||||||||||
| Net income (GAAP) | $ | 1,598 | $ | (933 | ) | $ | 2,248 | $ | 2,442 | $ | 3,209 | ||||||||
| Add: Merger-related expenses | 1,940 | 7,316 | 219 | 571 | — | ||||||||||||||
| Add: Day 2 Non-PCD Provision | — | 3,931 | — | — | — | ||||||||||||||
| Subtract: Bargain purchase gain | — | (2,920 | ) | — | — | — | |||||||||||||
| Subtract: Tax effect of adjustment (5) | (381 | ) | (1,439 | ) | (19 | ) | (5 | ) | — | ||||||||||
| Adjusted operating net income (non-GAAP) | $ | 3,157 | $ | 5,955 | $ | 2,448 | $ | 3,008 | $ | 3,209 | |||||||||
| Adjusted Earnings Per Share, Basic | |||||||||||||||||||
| Weighted average shares, basic | 8,979,527 | 8,971,649 | 6,287,997 | 6,278,113 | 6,269,790 | ||||||||||||||
| Basic earnings (loss) per share (GAAP) | $ | 0.18 | $ | (0.10 | ) | $ | 0.36 | $ | 0.39 | $ | 0.51 | ||||||||
| Adjusted earnings (loss) per share, basic (non-GAAP) | $ | 0.35 | $ | 0.66 | $ | 0.39 | $ | 0.48 | $ | 0.51 | |||||||||
| Adjusted Earnings Per Share, Diluted | |||||||||||||||||||
| Weighted average shares, diluted | 9,005,923 | 8,994,315 | 6,303,282 | 6,289,405 | 6,282,534 | ||||||||||||||
| Diluted earnings (loss) per share (GAAP) | $ | 0.18 | $ | (0.10 | ) | $ | 0.36 | $ | 0.39 | $ | 0.51 | ||||||||
| Adjusted diluted earnings (loss) per share (non-GAAP) | $ | 0.35 | $ | 0.66 | $ | 0.39 | $ | 0.48 | $ | 0.51 | |||||||||
| Adjusted Pre-Provision, Pre-Tax Earnings | |||||||||||||||||||
| Net interest income | $ | 17,451 | $ | 18,359 | $ | 11,749 | $ | 11,494 | $ | 10,850 | |||||||||
| Total noninterest income | 3,611 | 6,444 | 3,203 | 2,686 | 4,047 | ||||||||||||||
| Net revenue | $ | 21,062 | $ | 24,803 | $ | 14,952 | $ | 14,180 | $ | 14,897 | |||||||||
| Total noninterest expense | 18,335 | 21,929 | 10,459 | 10,659 | 9,887 | ||||||||||||||
| Pre-provision, pre-tax earnings | $ | 2,727 | $ | 2,874 | $ | 4,493 | $ | 3,521 | $ | 5,010 | |||||||||
| Add: Merger expenses | 1,940 | 7,316 | 219 | 571 | — | ||||||||||||||
| Add: Day 2 Non-PCD Provision | — | 3,931 | — | — | — | ||||||||||||||
| Subtract: Bargain purchase gain | — | (2,920 | ) | — | — | — | |||||||||||||
| Adjusted pre-provision, pre-tax, earnings | $ | 4,667 | $ | 11,201 | $ | 4,712 | $ | 4,092 | $ | 5,010 | |||||||||
| Adjusted Performance Ratios | |||||||||||||||||||
| Average assets | $ | 2,016,958 | $ | 2,051,578 | $ | 1,449,185 | $ | 1,448,478 | $ | 1,431,612 | |||||||||
| Return on average assets (GAAP) | 0.32 | % | (0.18 | %) | 0.62 | % | 0.68 | % | 0.90 | % | |||||||||
| Adjusted return on average assets (non-GAAP) | 0.63 | % | 1.15 | % | 0.67 | % | 0.84 | % | 0.90 | % | |||||||||
| Average shareholders’ equity | $ | 168,245 | $ | 157,844 | $ | 122,802 | $ | 118,255 | $ | 116,628 | |||||||||
| Return on average equity (GAAP) | 3.85 | % | (2.35 | %) | 7.28 | % | 8.31 | % | 11.07 | % | |||||||||
| Adjusted return on average equity (non-GAAP) | 7.61 | % | 15.01 | % | 7.93 | % | 10.23 | % | 11.07 | % | |||||||||
| Pre-provision, pre-tax return on average assets (non-GAAP) | 0.54 | % | 0.56 | % | 1.24 | % | 0.98 | % | 1.40 | % | |||||||||
| Adjusted pre-provision, pre-tax return on average assets (non-GAAP) | 0.93 | % | 2.18 | % | 1.30 | % | 1.14 | % | 1.40 | % | |||||||||
| Adjusted Net Interest Margin | |||||||||||||||||||
| Net interest income | $ | 17,451 | $ | 18,359 | $ | 11,749 | $ | 11,494 | $ | 10,850 | |||||||||
| Tax-equivalent net interest income (non-GAAP) | 17,547 | 18,461 | 11,842 | 11,587 | 10,931 | ||||||||||||||
| Average earning assets | 1,888,427 | 1,919,864 | 1,374,566 | 1,370,187 | 1,361,172 | ||||||||||||||
| Net interest margin | 3.75 | % | 3.80 | % | 3.40 | % | 3.37 | % | 3.21 | % | |||||||||
| Net interest margin fully tax equivalent (non-GAAP) | 3.77 | % | 3.83 | % | 3.43 | % | 3.40 | % | 3.24 | % | |||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands, except share and per share data)
| (unaudited) | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||||||
| Efficiency Ratio | |||||||||||||||||||
| Total noninterest expense (GAAP) | $ | 18,335 | $ | 21,929 | $ | 10,459 | $ | 10,659 | $ | 9,887 | |||||||||
| Add: other real estate owned income, net | 8 | (5 | ) | (10 | ) | — | — | ||||||||||||
| Subtract: amortization of intangibles | (442 | ) | (448 | ) | (4 | ) | (4 | ) | (4 | ) | |||||||||
| Subtract: loss on disposal of premises and equipment, net | — | 3 | (2 | ) | — | (49 | ) | ||||||||||||
| Subtract: merger expenses | (1,940 | ) | (7,316 | ) | (219 | ) | (571 | ) | — | ||||||||||
| Adjusted non-interest expense (non-GAAP) | $ | 15,961 | $ | 14,163 | $ | 10,224 | $ | 10,084 | $ | 9,834 | |||||||||
| Tax-equivalent net interest income (non-GAAP) | $ | 17,547 | $ | 18,461 | $ | 11,842 | $ | 11,587 | $ | 10,931 | |||||||||
| Total noninterest income (GAAP) | 3,611 | 6,444 | 3,203 | 2,686 | 4,047 | ||||||||||||||
| Bargain purchase gain | — | (2,920 | ) | — | — | — | |||||||||||||
| Securities losses (gains), net | — | 154 | (39 | ) | — | — | |||||||||||||
| Adjusted income for efficiency ratio (non-GAAP) | $ | 21,158 | $ | 22,139 | $ | 15,006 | $ | 14,273 | $ | 14,978 | |||||||||
| Efficiency ratio (non-GAAP) | 75.44 | % | 63.97 | % | 68.13 | % | 70.65 | % | 65.65 | % | |||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands, except share and per share data)
| (unaudited) | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||||||
| Tax-Equivalent Net Interest Income | |||||||||||||||||||
| GAAP measures: | |||||||||||||||||||
| Interest income – loans | $ | 20,639 | $ | 21,516 | $ | 14,479 | $ | 14,004 | $ | 13,484 | |||||||||
| Interest income – investments and other | 3,383 | 3,970 | 2,965 | 3,051 | 2,850 | ||||||||||||||
| Interest expense – deposits | (6,038 | ) | (6,415 | ) | (4,958 | ) | (4,820 | ) | (4,771 | ) | |||||||||
| Interest expense – federal funds purchased | — | (1 | ) | — | — | — | |||||||||||||
| Interest expense – subordinated debt | (467 | ) | (396 | ) | (69 | ) | (69 | ) | (69 | ) | |||||||||
| Interest expense – junior subordinated debt | (66 | ) | (68 | ) | (68 | ) | (66 | ) | (68 | ) | |||||||||
| Interest expense – other borrowings | — | (247 | ) | (600 | ) | (606 | ) | (576 | ) | ||||||||||
| Net interest income | $ | 17,451 | $ | 18,359 | $ | 11,749 | $ | 11,494 | $ | 10,850 | |||||||||
| Non-GAAP measures: | |||||||||||||||||||
| Add: Tax benefit realized on non-taxable interest income – loans (5) | $ | 16 | $ | 18 | $ | 13 | $ | 12 | $ | — | |||||||||
| Add: Tax benefit realized on non-taxable interest income – municipal securities (5) | 80 | 84 | 80 | 81 | 81 | ||||||||||||||
| Tax benefit realized on non-taxable interest income | $ | 96 | $ | 102 | $ | 93 | $ | 93 | $ | 81 | |||||||||
| Tax-equivalent net interest income | $ | 17,547 | $ | 18,461 | $ | 11,842 | $ | 11,587 | $ | 10,931 | |||||||||
| Tangible Common Equity and Tangible Assets | |||||||||||||||||||
| Total assets (GAAP) | $ | 2,033,346 | $ | 2,010,281 | $ | 1,450,716 | $ | 1,457,528 | $ | 1,447,195 | |||||||||
| Subtract: goodwill | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | |||||||||
| Subtract: core deposit intangibles, net | (14,544 | ) | (14,986 | ) | (104 | ) | (108 | ) | (113 | ) | |||||||||
| Tangible assets (Non-GAAP) | $ | 2,015,772 | $ | 1,992,265 | $ | 1,447,582 | $ | 1,454,390 | $ | 1,444,052 | |||||||||
| Total shareholders’ equity (GAAP) | $ | 168,675 | $ | 166,531 | $ | 125,115 | $ | 119,891 | $ | 117,816 | |||||||||
| Subtract: goodwill | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | |||||||||
| Subtract: core deposit intangibles, net | (14,544 | ) | (14,986 | ) | (104 | ) | (108 | ) | (113 | ) | |||||||||
| Tangible common equity (Non-GAAP) | $ | 151,101 | $ | 148,515 | $ | 121,981 | $ | 116,753 | $ | 114,673 | |||||||||
| Tangible common equity to tangible assets ratio | 7.50 | % | 7.45 | % | 8.43 | % | 8.03 | % | 7.94 | % | |||||||||
| Tangible Book Value Per Share | |||||||||||||||||||
| Tangible common equity (non-GAAP) | $ | 151,101 | $ | 148,515 | $ | 121,981 | $ | 116,753 | $ | 114,673 | |||||||||
| Common shares outstanding, ending | 8,986,696 | 8,974,102 | 6,296,705 | 6,280,406 | 6,277,373 | ||||||||||||||
| Tangible book value per share | $ | 16.81 | $ | 16.55 | $ | 19.37 | $ | 18.59 | $ | 18.27 | |||||||||
(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliations” for additional information and detailed calculations of adjustments.
(2) All ratios at March 31, 2025 are estimates and subject to change pending the Bank's filing of its Call Report. All other periods are presented as filed.
(3) Capital ratios presented are for First National Corporation.
(4) Capital ratios are for First Bank.
(5) The tax rate utilized in calculating the tax benefit is
FAQ
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